Ethereum Price Analysis: ETH Rejects $2,700 as Vitalik Buterin Donates $1M 7-Days to US Elections

Ethereum Price Analysis: 

Ethereum price hit a weekly timeframe peak of $2,695 on Oct 30, having recorded 15% gains in the last 20 trading days. On-chain data shows 400 ETH outflows from Ethereum co-founder Vitalik Buterin could impact price action in the days ahead.

Is ETH price on the verge of a breakout above $3k or another $2,500 reversal.

ETH Enters 4-Day Winning Run amid Dovish Fed Expectations

After battling bearish headwinds in mid-October, Ethereum price trend has entered positive phase over the last 3-days as investors switch make big bets ahead of the US elections. Another key factor behind bullish global markets multiple macroeconomic reports scheduled for release in the first week of November.

The US Non-Farm Payrolls is scheduled for Friday November 1, while the next US Fed Meeting is slated for November 7.

Amid overwhelming anticipation of more dovish Fed decisions in Q4, Ethereum and other major crypto assets including Bitcoin (BTC), Ripple (XRP) and Solana (SOL) have all witnessed significant gains since the start of the week.

But zooming out, the chart above highlights ETH price trends in comparison to Bitcoin since Oct 10. Between Oct 10 and Oct 30, Ethereum has gained, 15.30% as its rally remained subdued below $2,700 at the time of writing.

Meanwhile Bitcoin rose to yet another monthly peak of $72,760, posting over 25% gains over the same period. This highlights that certain bearish catalysts are active within the Etheruem ecosystem, which have evidently see ETH rally fall behind BTC in the last 20-days.

Vitalik Buterin ETH Outflows Spotted Amid another Rally

Over the last four years, the Ethereum Foundation, along with co-founder Vitalik Buterin, has established a pattern of liquidating holdings during major ETH rallies. This pattern resurfaced this week, sparking concerns across Ethereum markets.

On October 29, blockchain security platform PeckShield alerted its followers to a 400 ETH outflow (~$1.06 million) from Buterin, coinciding with ETH’s recent price rally.

#PeckShieldAlert: Vitalik Buterin has transferred 400 $ETH to four addresses: polymathkids.eth, crystalhearts.eth, 0xbd9b…8c5f, and 0xCF344…73F4.
— @PeckShieldAlert, October 29, 2024

The chart below shows how Buterin’s latest outflows were made in three tranches: three donations of 100 ETH each to charities tagged Polymathkids, Crystal Hearts, and UHFfund, with an additional 100 ETH transferred to a Binance wallet.

While these recent outflows appear to be directed toward charitable causes, they still add credence to the long-running narrative that ETH founders and insiders tend to liquidate holdings during rallies. This behavior has historically cast a shadow over Ethereum’s upward momentum.

Some analysts suggest that Buterin’s recent sales may have contributed to slowing ETH’s ascent, possibly preventing a decisive breakout above the $2,700 resistance level.

Meanwhile, Bitcoin price surge to new highs at $72,760, on Oct 30, further emphasizing the narrative the insider-driven sell pressure has impacted ETH rally.

ETH Price Forecast: Bears Eyeing $2,550 Reversal

Ethereum’s recent price action shows potential for a reversal as it nears the $2,700 resistance level, yet struggles to break out amid consistent sell pressure.

The Bollinger Bands indicators highlight an upper resistance at approximately $2,744.93, aligning with recent rejections at this level.

This level has historically posed a challenge, especially with Ethereum’s momentum falling behind BTC.

The Relative Strength Index (RSI) stands at 58.46, signaling moderate buying pressure but not yet indicating overbought conditions.

The RSI’s slight decline hints at diminishing bullish momentum, which could encourage sellers to push prices lower. Should ETH fail to break above $2,700 convincingly, a retracement towards the $2,550 support level may be in play.

In summary, unless Ethereum sustains buying pressure to break out past $2,700, the bearish reversal to the $2,550 range remains a plausible near-term scenario.